Electric Bus Manufacturers Red Flag Government Ordinance on Mandatory Advertisement for Fame Program

Electric Bus Manufacturers Red Flag Government Ordinance on Mandatory Advertisement for Fame Program

Photo: Office ET Now

HIGHLIGHTS

  • In accordance with previous contracts, advertisements were authorized in accordance with FAME contracts.
  • The loss becomes significant in the long term because the buses have to be operated and maintained for 12 years.
New Delhi: Nearly four months after the Department of Heavy Industries (DHI) issued an order mandating the E-bus operators to place the FAME logo prominently on both sides of the E-bus, it has been pointed out by the industry. ET Now has learned exclusively from sources that prominent E-bus makers are feeling the pinch, with ad revenue significantly hit.
In line with DHI’s order issued at the end of February this year, DHI has made it mandatory for manufacturers to place the FAME on both sides of buses. Industry sources said areas of the bus marked by the government earlier had been rented out to advertisers to generate revenue.

Industry sources have informed ET Now that this move has not been well received by operators and that this step will result in significant losses according to initial assessments.

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In accordance with previous contracts, advertisements were authorized in accordance with FAME contracts. The revenue generated by the advertisements was earned by the manufacturers or operators. However, sources said the latest decision left them wasting options to deal with it with a small mechanism to raise concerns.

While industry sources say the new directions will impact revenue, industry experts view the government’s latest move as an intention to reduce the overall cost to state governments.

A senior E-Bus manufacturer official told ET Now that manufacturers have no problem having the FAME logo on buses, but the size and placement of the logo will have a direct impact on revenue. . The loss becomes significant in the long term because the buses have to be operated and maintained for 12 years.

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India’s electric vehicle sector is experiencing a massive boom, with both central government and governments acquiring electric buses in a bid to provide clean and green transportation while reducing daily costs. State after state is placing large orders for electric buses. Below FAME II the government sanctioned Rs. 3,545 crores for 7,090 E-bus.

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